Chart of the Week

The U.S. is the leading chicken producer in the world and second behind Brazil in chicken meat exports. So exports are very important to chicken prices because about 20 percent is exported. USDA is estimating a record 40.03B lbs. production in 2015 up 3.8 percent from last year. Estimated exports at 6.7B lbs. are down 8.5 percent. Reduced exports are being caused by the high $US value; a West Coast dock slowdown which has now been solved; a ban on all U.S. meat imports by Russia, our previously number 2 customer; and the detection of avian influenza in the U.S., which has caused over 40 countries to restrict or ban U.S. poultry imports. Higher chicken production and lower imports will cause lower chicken prices and negatively affect the demand and price for U.S. beef and pork in 2015.